1. A Turnkey Asset Allocation Solution
to help you build your practice:
Streamline account management, saving time to
focus on serving complex client account needs
Reduce relationship risk by avoiding the
pitfalls of individual fund selection
Add value to your practice by leveraging
the insights of the American Express
Capital Markets Committee
For Broker-Dealer use only. Not approved for use with clients.
2. A ready-to-use, professionally managed asset allocation tool.
Introducing AXP® Portfolio Builder Series Four levels of asset allocation and diversification working for your clients
AXP Portfolio Builder Series Investment Process
A series of six asset allocation ■ Serves as a catalyst to have your clients consolidate all their
Step 1
funds covering the entire money at American Express Financial Advisors. Disciplined asset allocation
risk/return spectrum. ■ Gives you an efficient tool to help acquire high-potential The American Express Capital Markets
clients each year. Committee determines what percentage of Stocks Bonds Cash
each fund’s assets should be invested in
■ An appropriate choice for rollover and small business clients, three asset classes.
A comprehensive permitting you more time to do ongoing financial planning.
investment solution ■ Offers a ready solution for referrals every time. Step 2
designed to help you focus ■ Frees up time to deepen relationships with clients and review
the insurance needs of your clients. Diversification among investment categories Domestic Equity Bond Funds Money Market
on the six elements of a Determine allocation among the investment Funds Government Funds
■ Can be part of an American Express One Account. categories in each asset class.
Growth
Investment
successful practice. Value
grade
■ For equity funds, this includes diversification Blend
Large cap corporate
by style, market capitalization and geography.
Mid cap High yield
■ For bond funds, this includes Small cap corporate
Six Fund Profiles diversification by sector, maturity, Global
duration and credit quality. International
Funds
Developed markets
Emerging markets
AXP Portfolio Builder
®
AXP Portfolio Builder
® AXP Portfolio Builder
®
Conservative Fund Moderate Conservative Fund Moderate Fund
Step 3
5% Diversification among underlying funds
10% Stock Funds 20% Stock Funds 35% Stock Funds 50% American Express® Funds
Large-, mid- and small-cap Large-, mid- and small-cap Large-, mid- and small-cap Senior American Express asset management
20%
Growth and value 35% Growth and value 50% 50% Growth and value executives choose and monitor individual American Express® Partners Funds
70% International developed 60% International International funds for each investment category based on
markets Emerging markets Emerging markets factors that include:
Bond Funds 70% Bond Funds 60% Bond Funds 50% ■ Historical performance
Government Government Government
Investment grade corporate Investment grade corporate Investment grade corporate ■ Risk/return characteristics
Multi-sector High yield corporate High yield corporate ■ Manager tenure
Global Global
Cash 10% Multi-sector Multi-sector
Cash 5% Step 4
Periodic reallocation
AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder
Fund investments reallocated to keep the
Moderate Aggressive Fund Aggressive Fund Total Equity Fund funds within their target ranges.
Stock Funds 65% Stock Funds 80% Stock Funds 100%
35% Large-, mid- and small-cap
Growth and value
20%
Large-, mid- and small-cap
Growth and value 100%
Large-, mid- and small-cap
Growth and value
Result
International International International
65%
Emerging markets 80% Emerging markets Emerging markets AXP Portfolio Builder Series
Bond Funds 35% Bond Funds 20%
Government Government
Investment grade corporate
High yield corporate
Investment grade corporate
High yield corporate
AXP Portfolio Builder Series:
Global Global ■ Gives you more time to focus on your most important clients
Multi-sector Multi-sector
■ Complements Morningstar Advisor Workstation
AXP Portfolio Builder funds will invest in the types of stock and bond funds listed above. These stock and bond funds may invest in asset classes not specifically listed ■ Delegates asset allocation to experienced investment professionals
here. Pie charts represent neutral allocation for each fund. Actual asset allocation will vary over time depending on market conditions.
■ Taps the insights of David Joy, Ted Truscott, and Dan Laufenberg
There are special risk considerations associated with international investing related to market, currency, economic, political and other factors. Stocks of small
companies generally may be subject to abrupt or erratic price movements more so than stocks of larger companies. Some of these companies also have fewer ■ Leverages the subadviser selection process by integrating American Express Partners Funds
financial resources. Higher yield corporate bond prices may fluctuate more broadly than prices of higher quality bonds. Risk of principal and income is also greater
than with higher quality securities.
